24
SOFTWARE SECTOR REPORT December 2017

Software Sector Summary Report - gcaaltium.com · [email protected] Glen Kruger Director [email protected] Mike Janovec Vice President [email protected] Gautam Garg Vice President

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SOFTWARESECTOR REPORT

December 2017

22

Select Financing Transactions Quarterly Financing Volume (1)(2) Quarterly M&A Volume (3) Select M&A Transactions (4)

Company Amount ($MM) Target Acquirer EV ($MM)

$115 $3,903

$100 $1,917

$40 $1,235

$37 $1,125

$34 $713

$30 $614

$28 $531

$25 $459

Last 12 Months Software Price Performance vs. S&P 500 (5) M&A EV/ NTM Rev. Over Time (6)

` Financing Activity by Quarter

$48.4 Billion2017 Financing Volume (1)(2)

6372017 Financing Transactions (1)(2)

$42.9 Billion2017 M&A Volume (3)

982017 M&A Transactions (3)

23%

46%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

SPX IGV

103 111127

94

123

156 160 159 162

Q4'15 Q1'16 Q2'16Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

$6

$9$10

$5$6

$14$12 $11

$12

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

$16

$6

$50

$41

$15$12

$5$12 $13

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

29

14

2924

29 25 2130

22

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

( )

3.9x

3.1x

4.2x

3.6x 4.0x

4.6x

3.3x

4.7x

3.9x

5.3x

4.3x

3.7x

4.9x

3.7x

2.7x 2.2x

2.9x 2.9x

4.5x 4.1x

2.8x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

2011 2012 2013 2014 2015 2016 2017

All Buyers Strategic Buyers PE Buyers

DEAL DASHBOARD

Notes:Sources: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 1/12/2018.1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. 2) Financings include Software Venture and Private Equity Growth / Expansion activity. 3) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 4) Software M&A transactions reflect select transactions in CY2017. M&A metrics are based on closed and announced transactions.5) iShares North American Tech-Software ETF (IGV), used as proxy for software landscape. Top holdings in the ETF include ADBE, MSFT, ORCL, CRM, and INTU. 6) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM.

Software

Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count (3)

$Bn $Bn54%

40%

(62%)

2%

33

GCA OVERVIEW

US Team

Steve FletcherManaging DirectorHead of Software

[email protected]

Jimmy OrozcoManaging [email protected]

Josh WepmanManaging Director

Software & Digital Media

[email protected]

The GCA Software Team

Clark CallanderManaging Director

Head of Investment [email protected]

Todd CarterCo-President & [email protected]

Executive Leadership Select Europe Team

**Sascha PfeifferCo-Head of European Technology & Media

[email protected]

*Adrian ReedManaging Director

[email protected]

*Stephen GeorgiadisManaging Director

[email protected]

**Raiko SteltenDirector

[email protected]

Select Asia Team

***Ryuichi KanemakiManaging [email protected]

***Tomohiko KubotaManaging Director

CEO of [email protected]

***Akikazu IdaCo-Head of Asian

Technology & [email protected]

Glen KrugerDirector

[email protected]

Mike JanovecVice President

[email protected]

Gautam GargVice President

[email protected]

Daniel AvrutskyManaging Director

[email protected]

Chris GoughManaging Director

Real Estate [email protected]

Sean MinnihanManaging Director

FinTechFinancial Software

[email protected]

Derek BellManaging DirectorBusiness [email protected]

JT HermanManaging Director

Industrial [email protected]

Arthur KirschManaging Director

Healthcare [email protected]

John LambrosManaging Director

Head of Digital [email protected]

Alex VitaleManaging Director

Auto [email protected]

*Phil AdamsCEO of GCA Altium

[email protected]

**Tobias SchultheissManaging Director

[email protected]

Sameer JindalManaging Director

Head of Indian [email protected]

Paul DiNardoManaging Director

[email protected]

*Adrian Reed, Phil Adams and Stephen Georgiadis are Managing Directors at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation.**Raiko Stelten, Sascha Pfeiffer and Tobias Schultheiss are Managing Directors/Directors at GCA Altium AG, a wholly-owned subsidiary of GCA Corporation.***Akikazu Ida, Ryuichi Kanemaki and Tomohiko Kubota are Managing Directors at GCA Corporation.

44

Index Performance

RECENT STOCK PERFORMANCE

Last 12 Months Last 3 Years

Notes:Sources: Capital IQ. Market Data as of 1/12/2018.Platform: ADBE, IBM, MSFT, ORCL, SAP.Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI.Infrastructure: ALTR, APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW.SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, CALD, CARB, CLDR, COUP, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MDB, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN.BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT.Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, VEEV.

(5%)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

Sector 3 Months 1 Year 3 Years

Platform 11.3% 32.8% 61.0%

Security 2.2% 23.7% 25.2%

Infrastructure 11.4% 38.7% 56.7%

SaaS / On Demand 10.6% 47.6% 80.6%

BI & Analytics 16.5% 36.3% 12.2%

Vertical 2.1% 41.9% 42.8%

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17

55

Valuation and Operational Metrics

TRADING COMPARABLES

Notes:Sources: Capital IQ. Market Data as of 1/12/2018.Figures represent mean values of respective comp groups.Platform: ADBE, IBM, MSFT, ORCL, SAP.Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI.Infrastructure: ALTR, APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SAIL, SOW, SPLK, TEAM, VMW.SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, CALD, CARB, CLDR, COUP, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MDB, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SEND, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN.BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT.Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, VEEV.

EV / 2018E Revenue EV / 2018E EBITDA

2018E / 2017E Revenue Growth 2018E EBITDA Margin

38.9x

27.6x 26.9x 23.9x

20.6x

14.2x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

45.0x

SaaS BI & Analytics Infrastructure Security Vertical Platform

Median: 25.4x

37.9%

26.0% 23.6% 23.5%

17.6% 15.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Platform Vertical Infrastructure Security SaaS BI & Analytics

Median: 23.5%

6.0x5.6x 5.6x 5.1x

4.2x 4.1x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

SaaS Infrastructure Platform Vertical Security BI & Analytics

Median: 5.3x

21.2% 18.9% 17.4% 15.6% 13.6%

8.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

SaaS BI & Analytics Infrastructure Vertical Security Platform

Median: 16.5%

66

Software Trading Statistics

PUBLIC COMPANY VALUATIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Market Data as of 1/12/2018. Negative margins considered NM. Multiples <0 and >100 considered NM.

($MM, Except Per Share Data)

Stock Trading Statistics Operating Metrics

Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin

1/12/2018 Value Debt Value CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E 17E/16A 18E/17E 19E/18E CY 17E CY 18E CY 19E

Platform

Microsoft Corporation $89.60 $691,227 ($44,660) $646,567 6.4x 5.9x 5.4x 16.2x 14.6x 12.8x 26.2x 25.3x 22.4x 16.1% 9.2% 7.9% 39.4% 40.1% 42.4%

Oracle Corporation $49.51 204,952 (10,904) 194,048 5.0 4.8 4.6 12.8 10.3 9.7 21.3 16.2 15.1 4.5% 4.2% 4.2% 38.9% 46.6% 47.4%

International Business Machines Corporation $163.14 151,034 34,127 185,161 2.4 2.4 2.3 9.7 9.4 9.4 11.8 11.8 11.4 (1.6%) 0.1% 0.1% 24.3% 25.2% 25.0%

SAP SE $110.26 132,188 683 132,871 4.7 4.4 4.1 13.6 13.1 12.1 21.9 20.2 18.1 21.4% 7.7% 6.7% 34.7% 33.2% 33.7%

Adobe Systems Incorporated $195.05 96,149 (3,938) 92,210 12.6 10.5 9.0 37.0 23.6 19.9 57.7 35.1 28.8 24.7% 19.9% 17.0% 34.2% 44.7% 45.3%

Mean 6.2x 5.6x 5.1x 17.8x 14.2x 12.8x 27.8x 21.7x 19.2x 13.0% 8.2% 7.2% 34.3% 37.9% 38.7%

Median 5.0 4.8 4.6 13.6 13.1 12.1 21.9 20.2 18.1 16.1% 7.7% 6.7% 34.7% 40.1% 42.4%

Infrastructure

VMware, Inc. $132.53 $53,428 ($6,485) $46,943 6.0x 5.4x 5.0x 16.2x 15.0x 13.0x 25.8x 23.7x 21.5x 11.1% 9.8% 7.9% 36.8% 36.3% 38.8%

ServiceNow, Inc. $138.19 23,866 (515) 23,351 12.2 9.3 7.2 55.5 37.0 25.6 NM 76.9 51.1 38.2% 31.0% 28.0% 21.9% 25.1% 28.3%

Red Hat, Inc. $125.95 22,294 (954) 21,340 7.7 6.6 5.9 40.2 23.9 19.8 68.0 38.9 35.0 19.4% 16.8% 12.0% 19.1% 27.5% 29.6%

CA, Inc. $34.09 14,268 100 14,368 3.5 3.3 3.3 9.4 8.8 8.5 14.4 13.4 13.1 2.7% 3.6% 0.7% 37.1% 38.2% 38.9%

Micro Focus International plc $31.18 13,577 4,152 17,729 7.1 4.2 4.3 17.6 11.0 10.0 15.9 13.1 11.3 84.8% 67.2% (2.5%) 40.3% 38.6% 43.4%

Citrix Systems, Inc. $90.04 13,567 (87) 13,480 4.8 4.7 4.5 13.8 14.6 14.3 18.8 18.6 16.3 (17.4%) 2.0% 3.1% 34.7% 32.1% 31.6%

Splunk Inc. $89.64 12,680 (981) 11,700 9.4 7.5 5.9 80.1 55.7 37.4 NM NM 70.1 30.7% 25.4% 27.5% 11.8% 13.5% 15.8%

Atlassian Corporation Plc $52.57 11,872 (614) 11,258 15.4 11.7 9.2 57.5 41.8 NA NM 99.4 71.8 37.9% 31.1% 27.0% 26.7% 28.1% NA

F5 Networks, Inc. $141.81 8,876 (1,017) 7,859 3.8 3.6 3.5 9.6 9.1 NA 16.8 16.1 14.9 3.6% 3.1% 3.7% 39.3% 40.0% NA

LogMeIn, Inc. $121.00 6,369 (276) 6,093 6.0 5.3 5.0 16.5 13.9 12.6 28.8 24.7 21.7 5.6% 12.4% 6.4% 36.3% 38.4% 39.7%

Nutanix, Inc. $37.84 6,070 (366) 5,705 5.8 4.9 3.9 NM NM 34.9 NM NM NM 56.2% 19.7% 25.2% NM 1.3% 11.2%

Software Aktiengesellschaft $58.46 4,466 (53) 4,413 4.1 4.0 3.8 12.9 12.5 11.7 19.7 18.4 17.3 15.8% 4.2% 3.9% 32.1% 31.8% 32.8%

Pure Storage, Inc. $16.47 3,570 (551) 3,019 3.0 2.3 1.8 NM 34.4 18.5 NM NM 49.5 39.6% 31.3% 26.9% 2.1% 6.6% 9.6%

New Relic, Inc. $60.39 3,325 (227) 3,098 9.5 7.4 6.0 NM 97.1 52.1 NM NM NM 34.9% 27.2% 24.3% 1.2% 7.7% 11.5%

MuleSoft, Inc. $24.40 3,171 (182) 2,990 10.3 7.6 5.8 NM NM NM NM NM NM 55.0% 35.9% 30.2% NM NM NM

Commvault Systems, Inc. $53.90 2,489 (495) 1,995 2.9 2.6 2.4 22.9 17.9 13.5 52.9 43.0 35.7 8.2% 10.3% 9.9% 12.6% 14.6% 17.7%

Progress Software Corporation $50.69 2,423 (62) 2,362 5.9 5.8 5.8 17.0 12.3 12.2 65.8 21.7 20.8 (1.9%) 1.6% 1.3% 35.0% 47.6% 47.2%

NetScout Systems, Inc. $27.55 2,401 (7) 2,394 2.2 2.3 2.3 9.1 12.4 9.5 16.3 19.6 15.9 (3.7%) (6.2%) 2.7% 24.3% 19.0% 23.9%

Appian Corporation $36.76 2,223 (72) 2,151 12.8 11.0 9.2 NM NM NM NM NM NM 26.3% 16.4% 19.8% NM NM NM

Altair Engineering Inc. $25.88 1,628 75 1,703 5.1 4.7 4.2 76.4 39.4 27.0 NM 75.4 49.2 5.7% 8.4% 14.0% 6.7% 12.1% 15.4%

SailPoint Technologies Holdings, Inc. $16.45 1,404 137 1,541 8.9 7.1 5.7 70.8 NM 71.6 NM NM NM 31.3% 24.4% 25.1% 12.5% 6.8% 8.0%

A10 Networks, Inc. $7.58 536 (124) 412 1.7 1.6 1.5 34.2 27.1 17.4 NM 94.8 44.6 4.5% 7.6% 7.4% 5.0% 5.9% 8.5%

Mean 6.7x 5.6x 4.8x 32.9x 26.9x 22.8x 31.2x 39.9x 32.9x 22.2% 17.4% 13.8% 22.9% 23.6% 25.1%

Median 5.9 5.1 4.8 17.6 16.4 15.9 19.7 23.7 21.7 17.6% 14.4% 11.0% 24.3% 26.3% 26.1%

77

Software Trading Statistics

PUBLIC COMPANY VALUATIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Market Data as of 1/12/2018. Negative margins considered NM. Multiples <0 and >100 considered NM.

($MM, Except Per Share Data)

Stock Trading Statistics Operating Metrics

Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin

1/12/2018 Value Debt Value CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E 17E/16A 18E/17E 19E/18E CY 17E CY 18E CY 19E

Security

Symantec Corporation $28.82 $17,868 $4,183 $22,051 4.5x 4.3x 4.1x 9.6x 8.5x 7.1x 19.9x 15.3x 14.0x 30.9% 3.5% 6.0% 46.3% 50.9% 56.9%

Check Point Software Technologies Ltd. $103.00 16,835 (1,510) 15,325 8.3 7.8 7.3 14.7 13.9 12.9 19.6 18.0 16.5 6.7% 6.3% 6.4% 56.0% 55.9% 56.5%

Palo Alto Networks, Inc. $153.52 14,107 (972) 13,135 6.7 5.5 4.8 27.9 21.4 17.4 50.1 40.9 34.1 25.8% 20.3% 16.5% 23.9% 25.8% 27.3%

Splunk Inc. $89.64 12,680 (981) 11,700 9.4 7.5 5.9 80.1 55.7 37.4 NM NM 70.1 30.7% 25.4% 27.5% 11.8% 13.5% 15.8%

Fortinet, Inc. $44.94 7,815 (1,276) 6,539 4.4 3.9 3.4 21.2 17.6 14.7 44.2 37.8 31.5 16.6% 14.0% 12.8% 20.7% 21.9% 23.3%

Trend Micro Incorporated $56.83 7,813 (1,257) 6,556 5.0 4.6 4.3 15.0 13.3 12.2 34.0 29.9 27.4 15.9% 8.9% 5.7% 33.5% 34.7% 35.7%

Proofpoint, Inc. $99.11 4,444 (78) 4,365 8.6 6.5 5.2 66.7 48.1 34.1 NM 96.2 63.4 35.7% 31.5% 25.9% 12.8% 13.5% 15.2%

FireEye, Inc. $15.59 2,878 (109) 2,769 3.7 3.5 3.2 31.7 27.3 20.3 NM NM 95.5 4.0% 7.7% 8.5% 11.8% 12.7% 15.7%

Qualys, Inc. $63.90 2,423 (303) 2,120 9.2 7.9 6.8 25.1 21.8 19.3 60.7 54.6 47.1 16.1% 16.4% 16.3% 36.8% 36.3% 35.3%

Mimecast Limited $32.29 1,851 (89) 1,762 7.4 6.0 5.0 81.9 57.6 46.4 NM NM NM 39.4% 23.9% 18.7% 9.0% 10.4% 10.8%

CyberArk Software Ltd. $43.42 1,508 (270) 1,238 4.8 4.0 3.4 22.1 17.6 14.3 39.4 33.0 26.7 18.6% 19.2% 17.6% 21.8% 23.0% 24.0%

Imperva, Inc. $44.25 1,505 (343) 1,162 3.6 3.1 2.7 26.8 20.9 15.3 47.6 43.2 33.7 21.6% 17.3% 15.4% 13.5% 14.7% 17.4%

Barracuda Networks, Inc. $27.50 1,476 (178) 1,298 3.5 3.3 2.8 40.3 16.3 12.8 98.2 31.3 24.8 7.3% 6.9% 18.3% 8.6% 20.0% 21.6%

Rapid7, Inc. $22.30 979 (84) 895 4.5 3.8 3.2 NM NM NM NM NM NM 25.7% 20.5% 17.0% NM NM 1.8%

F-Secure Oyj $4.91 769 (96) 674 3.3 2.9 2.7 30.4 19.6 13.8 51.1 37.1 23.9 23.0% 11.2% 10.1% 10.8% 15.0% 19.4%

SecureWorks Corp. $9.34 757 (100) 658 1.4 1.3 1.2 NM NM 28.1 NM NM NM 8.4% 8.3% 10.5% NM NM 4.2%

VASCO Data Security International, Inc. $14.35 572 (159) 414 2.2 2.0 1.9 21.7 19.3 14.9 37.3 36.5 31.9 (1.7%) 9.0% 5.7% 10.1% 10.4% 12.7%

MobileIron, Inc. $4.20 403 (82) 321 1.8 1.7 1.6 NM NM NM NM NM NM 6.3% 7.0% 8.9% NM NM NM

Zix Corporation $4.59 253 (33) 220 3.4 3.1 NA 12.0 10.1 NA 16.4 13.8 NA 9.1% 8.3% NA 27.9% 30.7% NA

Absolute Software Corporation $5.54 219 (33) 186 2.0 1.9 1.7 24.1 17.7 12.2 NM 57.3 24.3 4.5% 6.8% 8.0% 8.3% 10.7% 14.3%

Mean 4.9x 4.2x 3.7x 32.4x 23.9x 19.6x 43.2x 38.9x 37.7x 17.2% 13.6% 13.5% 21.4% 23.5% 22.7%

Median 4.4 3.8 3.4 25.1 19.3 14.9 41.8 36.8 31.5 16.4% 10.1% 12.8% 13.5% 20.0% 18.4%

88

Software Trading Statistics

PUBLIC COMPANY VALUATIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Market Data as of 1/12/2018. Negative margins considered NM. Multiples <0 and >100 considered NM.

($MM, Except Per Share Data)

Stock Trading Statistics Operating Metrics

Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin

1/12/2018 Value Debt Value CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E 17E/16A 18E/17E 19E/18E CY 17E CY 18E CY 19E

SaaS

Salesforce.com, inc. $110.24 $79,626 ($1,040) $78,586 7.5x 6.3x 5.3x 35.1x 28.5x 22.7x 82.6x 63.8x 50.0x 24.4% 20.0% 19.3% 21.4% 22.0% 23.2%

ServiceNow, Inc. $138.19 23,866 (515) 23,351 12.2 9.3 7.2 55.5 37.0 25.6 NM 76.9 51.1 38.2% 31.0% 28.0% 21.9% 25.1% 28.3%

Workday, Inc. $112.90 23,709 (1,738) 21,971 10.3 8.2 6.7 63.5 48.5 36.1 NM 97.0 71.5 36.0% 24.8% 22.7% 16.2% 17.0% 18.6%

Shopify Inc. $112.80 11,266 (927) 10,340 15.7 10.8 8.1 NM NM 90.5 NM NM NM 69.6% 44.6% 34.2% 2.8% 5.1% 8.9%

Veeva Systems Inc. $58.37 8,250 (758) 7,492 11.0 9.3 7.9 32.9 28.7 24.0 63.9 57.9 48.6 25.1% 18.5% 18.1% 33.4% 32.4% 32.8%

The Ultimate Software Group, Inc. $226.28 6,760 (129) 6,632 7.1 6.0 5.0 30.9 24.2 19.9 62.6 49.9 41.4 19.6% 19.1% 18.5% 23.0% 24.6% 25.3%

LogMeIn, Inc. $121.00 6,369 (276) 6,093 6.0 5.3 5.0 16.5 13.9 12.6 28.8 24.7 21.7 5.6% 12.4% 6.4% 36.3% 38.4% 39.7%

Aspen Technology, Inc. $75.12 5,449 81 5,530 11.3 10.9 10.3 23.8 22.6 20.9 32.0 36.0 33.6 3.1% 3.6% 6.7% 47.7% 48.3% 49.0%

Paycom Software, Inc. $88.75 5,171 (32) 5,139 11.9 9.5 7.6 38.7 30.9 24.3 70.4 56.8 45.3 31.3% 25.6% 24.2% 30.7% 30.7% 31.4%

Blackbaud, Inc. $95.55 4,490 321 4,811 6.1 5.5 5.0 24.6 23.1 20.1 44.1 39.0 34.4 8.1% 10.8% 9.7% 24.7% 23.8% 24.9%

RingCentral, Inc. $52.35 4,049 (172) 3,877 7.8 6.3 5.1 NM 85.8 60.4 NM NM NM 31.2% 23.3% 22.9% 6.5% 7.4% 8.5%

RealPage, Inc. $48.45 4,016 288 4,304 6.4 5.2 4.7 26.6 19.9 16.8 52.6 40.3 33.0 18.3% 23.0% 11.1% 24.1% 26.1% 27.8%

Zendesk, Inc. $37.51 3,808 (227) 3,581 8.4 6.5 5.0 NM NM 77.7 NM NM NM 36.8% 29.7% 28.3% 3.2% 4.8% 6.5%

j2 Global, Inc. $77.03 3,729 597 4,326 3.9 3.7 3.4 9.3 8.5 7.6 13.5 12.8 11.2 28.4% 5.4% 9.0% 41.6% 43.0% 44.2%

2U, Inc. $69.32 3,620 (185) 3,435 12.0 8.7 6.5 NM NM NM NM NM NM 38.5% 38.5% 33.4% 3.7% 3.8% 5.1%

HubSpot, Inc. $92.65 3,462 (198) 3,264 8.8 6.9 5.6 NM 91.6 57.9 NM NM NM 36.9% 27.5% 23.8% 5.9% 7.5% 9.6%

New Relic, Inc. $60.39 3,325 (227) 3,098 9.5 7.4 6.0 NM 97.1 52.1 NM NM NM 34.9% 27.2% 24.3% 1.2% 7.7% 11.5%

MuleSoft, Inc. $24.40 3,171 (182) 2,990 10.3 7.6 5.8 NM NM NM NM NM NM 55.0% 35.9% 30.2% NM NM NM

Box, Inc. $22.25 3,029 (88) 2,941 5.8 4.7 3.8 NM NM 49.8 NM NM NM 27.0% 23.5% 22.2% NM 4.0% 7.7%

Okta, Inc. $27.00 2,752 (224) 2,528 10.0 7.5 5.7 NM NM NM NM NM NM 57.8% 32.5% 33.4% NM NM NM

Paylocity Holding Corporation $49.64 2,607 (98) 2,509 7.5 6.2 5.1 37.9 30.0 24.3 65.1 51.3 45.6 26.1% 22.2% 21.9% 19.9% 20.5% 20.8%

Cloudera, Inc. $18.14 2,562 (390) 2,172 6.0 4.7 3.8 NM NM NM NM NM NM 39.0% 26.9% 23.6% NM NM NM

Qualys, Inc. $63.90 2,423 (303) 2,120 9.2 7.9 6.8 25.1 21.8 19.3 60.7 54.6 47.1 16.1% 16.4% 16.3% 36.8% 36.3% 35.3%

Cornerstone OnDemand, Inc. $39.17 2,268 (63) 2,205 4.6 4.4 4.0 36.3 24.6 19.6 93.5 52.5 34.4 14.2% 4.4% 10.5% 12.6% 17.7% 20.2%

Appian Corporation $36.76 2,223 (72) 2,151 12.8 11.0 9.2 NM NM NM NM NM NM 26.3% 16.4% 19.8% NM NM NM

Callidus Software Inc. $30.25 2,060 (176) 1,884 7.6 6.3 5.2 59.7 40.6 29.4 88.0 58.8 41.8 20.5% 20.1% 20.6% 12.7% 15.5% 17.7%

Coupa Software Incorporated $34.00 1,872 (219) 1,652 9.1 7.3 5.9 NM NM NM NM NM NM 35.8% 24.4% 23.4% NM NM 1.6%

Mimecast Limited $32.29 1,851 (89) 1,762 7.4 6.0 5.0 81.9 57.6 46.4 NM NM NM 39.4% 23.9% 18.7% 9.0% 10.4% 10.8%

Alteryx, Inc. $26.97 1,596 (157) 1,439 11.2 8.2 6.2 NM NM NM NM NM NM 50.3% 36.2% 32.5% NM NM NM

MongoDB, Inc. $29.28 1,481 (289) 1,192 7.8 5.8 4.3 NM NM NM NM NM NM 50.1% 35.3% 34.2% NM NM NM

Five9, Inc. $24.00 1,336 (17) 1,318 6.7 5.7 4.8 81.5 61.3 41.4 NM NM 82.0 21.6% 17.5% 18.3% 8.2% 9.3% 11.6%

Yext, Inc. $12.06 1,100 (113) 987 5.8 4.4 3.3 NM NM NM NM NM NM 36.9% 32.4% 32.6% NM NM NM

SendGrid, Inc. $25.68 1,080 (21) 1,059 9.7 7.8 6.2 98.6 87.4 75.3 NM NM NM 37.3% 24.5% 25.3% 9.8% 8.9% 8.2%

Instructure, Inc. $34.25 1,036 (67) 969 6.2 4.8 3.8 NM NM NM NM NM NM 41.1% 28.3% 26.2% NM NM NM

99

Software Trading Statistics

PUBLIC COMPANY VALUATIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Market Data as of 1/12/2018. Negative margins considered NM. Multiples <0 and >100 considered NM.

($MM, Except Per Share Data)

Stock Trading Statistics Operating Metrics

Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin

1/12/2018 Value Debt Value CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E 17E/16A 18E/17E 19E/18E CY 17E CY 18E CY 19E

SaaS (Cont'd)

Apptio, Inc. $24.42 $986 ($135) $851 4.6x 4.0x 3.4x NM NM 49.3x NM NM NM 15.8% 15.2% 15.3% NM 3.2% 7.0%

Workiva Inc. $21.80 914 (58) 856 4.1 3.6 3.2 NM NM NM NM NM NM 15.7% 13.9% 13.7% NM NM NM

SPS Commerce, Inc. $50.31 867 (164) 703 3.2 2.9 2.6 22.0 18.3 15.4 54.7 47.4 39.2 13.7% 11.0% 10.8% 14.5% 15.8% 16.8%

Benefitfocus, Inc. $25.75 805 65 870 3.4 3.1 2.7 46.0 31.3 22.3 NM NM 69.9 9.9% 9.8% 14.6% 7.4% 9.9% 12.1%

LivePerson, Inc. $12.55 747 (54) 693 3.2 3.0 2.7 38.2 31.6 23.7 NM NM 76.1 (2.1%) 7.2% 8.7% 8.3% 9.4% 11.5%

Carbonite, Inc. $26.00 727 (9) 717 2.9 2.7 2.4 15.2 12.1 9.7 33.3 25.9 22.5 18.7% 9.0% 9.4% 19.2% 22.2% 25.1%

Castlight Health, Inc. $4.30 575 (82) 493 3.8 3.0 2.5 NM NM 39.2 NM NM 80.6 28.6% 24.7% 18.8% NM NM 6.5%

ChannelAdvisor Corporation $9.45 251 (53) 198 1.6 1.5 1.4 42.4 25.0 14.9 NM NM 72.7 8.5% 10.1% 8.3% 3.8% 5.8% 9.1%

Brightcove Inc. $7.10 246 (22) 224 1.4 1.4 NA NM 41.5 NA NM NM NA 3.4% 6.4% NA NM 3.3% NA

Amber Road, Inc. $7.43 202 14 217 2.7 2.5 2.2 NM 64.5 33.3 NM NM NM 7.8% 10.0% 11.5% NM 3.9% 6.7%

Park City Group, Inc. $9.75 190 (10) 180 8.3 6.4 4.9 NA 19.2 13.4 67.2 26.5 17.3 31.7% 29.6% 30.9% NA 33.6% 36.6%

Marin Software Incorporated $10.75 61 (27) 34 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

Mean 7.4x 6.0x 5.0x 41.0x 38.9x 33.2x 57.1x 48.5x 46.6x 27.4% 21.2% 20.3% 17.5% 17.6% 18.9%

Median 7.5 6.0 5.0 36.3 30.0 24.3 61.7 50.6 45.3 27.0% 23.0% 20.2% 14.5% 15.6% 16.8%

Business Intelligence & Analytics

Splunk Inc. $89.64 $12,680 ($981) $11,700 9.4x 7.5x 5.9x 80.1x 55.7x 37.4x NM NM 70.1x 30.7% 25.4% 27.5% 11.8% 13.5% 15.8%

Tableau Software, Inc. $74.52 5,942 (943) 4,999 5.8 5.3 4.7 87.4 66.3 39.3 NM NM NM 5.1% 8.7% 13.6% 6.6% 8.0% 11.8%

Fair Isaac Corporation $159.56 4,785 499 5,284 5.6 5.2 4.9 23.1 19.8 18.1 32.2 28.1 23.8 5.2% 6.5% 6.7% 24.1% 26.4% 27.1%

Teradata Corporation $38.32 4,637 (299) 4,338 2.0 2.0 2.0 11.8 11.4 11.0 29.9 27.3 25.3 (7.8%) 0.8% 0.9% 17.2% 17.7% 18.2%

Verint Systems Inc. $43.05 2,746 451 3,197 2.8 2.6 2.5 12.6 10.3 9.5 15.6 14.1 12.9 7.5% 7.1% 5.8% 22.3% 25.4% 26.1%

Cloudera, Inc. $18.14 2,562 (390) 2,172 6.0 4.7 3.8 NM NM NM NM NM NM 39.0% 26.9% 23.6% NM NM NM

MicroStrategy Incorporated $139.75 1,600 (646) 954 1.9 1.9 1.9 9.6 13.9 14.0 27.9 53.9 51.3 (2.4%) 0.1% (1.0%) 19.9% 13.7% 13.7%

Alteryx, Inc. $26.97 1,596 (157) 1,439 11.2 8.2 6.2 NM NM NM NM NM NM 50.3% 36.2% 32.5% NM NM NM

Hortonworks, Inc. $21.34 1,505 (63) 1,442 5.6 4.4 3.6 NM 27.3 12.6 NM NM NM 39.1% 26.8% 23.4% NM 16.3% 28.6%

Gridsum Holding Inc. $11.78 362 (0) 362 3.7 2.3 1.7 NM 18.0 6.6 NM 35.1 11.5 70.6% 56.8% 41.4% NM 13.0% 25.2%

Datawatch Corporation $11.60 142 (30) 112 3.0 2.6 NA NM NA NA NM NM NA 17.9% 14.7% NA NM NA NA

Attunity Ltd. $6.71 135 (7) 128 2.1 1.8 1.5 33.0 25.5 NA NM 36.8 53.7 13.7% 17.0% 19.0% 6.2% 6.9% NA

Mean 4.9x 4.1x 3.5x 36.8x 27.6x 18.6x 26.4x 32.5x 35.5x 22.4% 18.9% 17.6% 15.4% 15.7% 20.8%

Median 4.6 3.5 3.6 23.1 19.8 13.3 28.9 31.6 25.3 15.8% 15.9% 19.0% 17.2% 13.7% 21.7%

1010

Software Trading Statistics

PUBLIC COMPANY VALUATIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Market Data as of 1/12/2018. Negative margins considered NM. Multiples <0 and >100 considered NM.

($MM, Except Per Share Data)

Stock Trading Statistics Operating Metrics

Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin

1/12/2018 Value Debt Value CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E 17E/16A 18E/17E 19E/18E CY 17E CY 18E CY 19E

Vertical

Cerner Corporation $72.90 $24,233 ($317) $23,916 4.6x 4.3x 3.9x 14.3x 13.1x 11.9x 30.1x 27.6x 24.8x 9.5% 8.2% 8.9% 32.4% 32.9% 33.1%

Constellation Software Inc. $585.65 12,411 (101) 12,310 5.0 4.4 3.8 19.2 16.6 14.3 27.2 22.8 19.8 15.6% 14.2% 15.4% 26.0% 26.5% 26.5%

SS&C Technologies Holdings, Inc. $49.47 10,184 2,114 12,298 7.3 6.7 6.6 17.8 15.7 13.4 25.7 21.6 19.3 13.1% 9.0% 2.0% 41.3% 43.0% 49.4%

Veeva Systems Inc. $58.37 8,250 (758) 7,492 11.0 9.3 7.9 32.9 28.7 24.0 63.9 57.9 48.6 25.1% 18.5% 18.1% 33.4% 32.4% 32.8%

Guidewire Software, Inc. $77.35 5,941 (561) 5,380 9.5 8.0 6.9 45.3 40.4 28.7 87.5 81.0 54.9 26.1% 19.1% 15.7% 20.9% 19.7% 24.0%

athenahealth, Inc. $129.47 5,181 154 5,335 4.4 4.0 3.6 20.1 15.8 13.6 64.5 45.0 37.3 12.0% 10.7% 11.1% 21.9% 25.2% 26.3%

Blackbaud, Inc. $95.55 4,490 321 4,811 6.1 5.5 5.0 24.6 23.1 20.1 44.1 39.0 34.4 8.1% 10.8% 9.7% 24.7% 23.8% 24.9%

RealPage, Inc. $48.45 4,016 288 4,304 6.4 5.2 4.7 26.6 19.9 16.8 52.6 40.3 33.0 18.3% 23.0% 11.1% 24.1% 26.1% 27.8%

Medidata Solutions, Inc. $66.90 3,913 (123) 3,790 7.0 5.9 5.0 28.3 23.5 19.3 52.6 45.7 37.1 17.6% 17.6% 17.5% 24.5% 25.2% 26.1%

CoreLogic, Inc. $46.81 3,856 1,648 5,504 3.0 2.9 2.9 11.6 11.2 10.3 20.1 18.5 15.9 (5.4%) 1.4% 2.1% 25.6% 26.1% 28.0%

Ellie Mae, Inc. $96.38 3,329 (366) 2,962 7.2 6.0 5.1 24.8 22.1 16.8 62.8 59.4 42.9 14.5% 19.1% 19.2% 28.9% 27.3% 30.1%

Allscripts Healthcare Solutions, Inc. $16.03 2,896 1,312 4,208 2.3 2.0 1.8 11.6 9.9 9.3 25.8 21.0 17.7 17.2% 18.2% 6.0% 20.0% 19.9% 20.0%

Inovalon Holdings, Inc. $14.20 2,071 (282) 1,790 4.0 3.7 3.3 16.3 14.5 13.2 45.4 39.9 36.4 5.6% 7.9% 9.9% 24.3% 25.4% 25.3%

AppFolio, Inc. $42.55 1,444 (43) 1,401 9.9 7.7 6.0 52.0 38.7 20.6 NM 72.1 28.6 34.3% 27.6% 28.0% 19.0% 20.0% 29.3%

Instructure, Inc. $34.25 1,036 (67) 969 6.2 4.8 3.8 NM NM NM NM NM NM 41.1% 28.3% 26.2% NM NM NM

HealthStream, Inc. $24.27 774 (123) 651 2.6 2.4 2.3 17.4 15.3 14.0 98.4 82.6 72.4 9.4% 7.5% 6.7% 15.1% 16.0% 16.4%

Castlight Health, Inc. $4.30 575 (82) 493 3.8 3.0 2.5 NM NM 39.2 NM NM 80.6 28.6% 24.7% 18.8% NM NM 6.5%

Mean 5.9x 5.1x 4.4x 24.2x 20.6x 17.8x 50.1x 45.0x 37.7x 17.1% 15.6% 13.3% 25.5% 26.0% 26.7%

Median 6.1 4.8 3.9 20.1 16.6 15.6 49.0 40.3 35.4 15.6% 17.6% 11.1% 24.5% 25.4% 26.4%

1111Notes:Source: Capital IQ as of 1/12/2018. Consensus Estimates used for CY2018E figures.Estimates for MRIN and SEND are not available.

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1212

Select Software M&A Transactions

RECENT ACQUISITIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 1/1/2018, where Enterprise Value is > $50MM.Transactions highlighted in yellow denote Private Equity acquirers.

($MM)

Announced Enterprise EV / Revenue EV / EBITDA

Date Acquirer Target Target Sector Value (EV) LTM NTM LTM NTM Target Description

12/18/17 Application Software $1,235 10.0x 8.6x NM 84.4x Provides cloud-based and semi-integrated payment processing software for businesses

12/12/17 Information Management $60 1.7x NA NA NAProvides web conferencing, team collaboration and content management SaaS, enabling sales teams to present materials to

clients through online sales presentations and track customer engagement

12/5/17 Application Software $340 NA NA NA NA Provides time-tracking and scheduling SaaS for small and medium-sized businesses, and the self-employed

11/30/17 Application Software $200 NA NA NA NA Provides supply chain analytics and market intelligence SaaS for the energy sector

11/29/17 Security $60 NA NA NA NAProvides employee anti-malware SaaS that separates personal and work-related Web browsing and email, and offers related

protection

11/27/17 Security $1,405 3.8x 3.6x 43.1x 18.9xProvides firewall, spam-filter and anti-virus, Web application protection, SSL VPN, data backup and recovery, and message

archiving appliances and software for businesses globally

11/27/17 Information Management $456 2.2x 2.2x NM 19.6xProvides online community and social network creation software SaaS, enabling businesses to advertise using customer

testimonials

11/17/17 Application Software $50 2.6x NA NA NAProvides finance-focused proposal generation and request-for-proposal (RFP) management, pitchbook building, sales

presentation and compliance SaaS for enterprises globally

11/16/17 Application Software $112 NA NA NA NAProvides software to retailers that allows them to capture images of home furnishings and decor items and display them in

3D for display to consumers on websites, digital advertising and social media

11/16/17 Application Software $137 5.6x NA NA NAProvides software solutions (accounting and tax compliance) for small and medium businesses, larger businesses,

accountants, bookkeepers, and lawyers

11/8/17 Storage NA NA NA NA NAProvides cloud-based email and file archiving SaaS for businesses. Software provides features for instant message and file

data archiving, search and info retrieval and related cloud storage services

11/7/17 Security $85 NA NA NA NA Provides vending management, scheduling, logistics and analytics SaaS for the retail sector

11/2/17 Infrastructure Management $548 NA NA NA NAProvides electronic design automation (EDA) software used to design system on chip (SoC), analog and embedded

semiconductors for semiconductor designers and OEMs

10/27/17 Infrastructure Management $726 NA NA NA NAProvides energy exchange trade execution, order routing, reporting, market data and risk management software, SaaS and

services for financial services brokers, exchanges and clearing houses

1313

Select Software M&A Transactions

RECENT ACQUISITIONS

($MM)

Announced Enterprise EV / Revenue EV / EBITDA

Date Acquirer Target Target Sector Value (EV) LTM NTM LTM NTM Target Description

7/25/17 Sage Group Intacct Corp. Application Software $850 9.7x NA NA NA Provides accounting and financial management software as a service (SaaS) for businesses

7/24/17 Partners Group Civica pl Application Software $1,370 NA NA NA NAProvides CRM, ERP, transaction processing, and document and records management software, software as a service (SaaS)

and systems integration services for public sector agencies globally

7/24/17 GENUI AG Acrolinx GmbH Information Management $60 NA NA NA NAProvides AI-based content creation software to businesses. Software provides a linguistic analytics engine that can "read"

content and provides grammar editing, monitoring, scoring, analytics reporting and development to written enterprise content

7/12/17 Application Software $80 NA NA NA NAProvides real-time contextual marketing enablement and customer experience personalization SaaS for companies in the

hospitality, dining, healthcare, entertainment, travel and education sectors

7/7/17 Application Software $133 3.3x NA 20.6x NAProvides SCM SaaS for businesses primarily within the US, UK and Europe. Software provides features for procurement, SRM,

contract management and spend analysis

7/6/17 Information Management $1,260 NA NA NA NAProvides open-source and Windows-based software for businesses. Software provides features for data management,

integration and backup

7/5/17 Infrastructure Management $55 1.0x NA NA NAProvides enterprise IT automation and workspace management software to businesses. Features include IT store

management, service desk optimization, on-boarding and off-boarding and workforce security

6/14/17 Hosted Services $200 2.0x NA 20.0x NAProvides infrastructure as a service (IaaS), backup and recovery, firewall, cloud storage and remote monitoring and

management services for businesses

6/14/17 Hosted Services $135 2.3x 2.2x NM 148.3x Operates as a domain name registry and provides domain name services to consumers and businesses

6/5/17 Security $69 1.0x NA NM NA Provides identity and access management SaaS, as well as IoT application development SaaS, for businesses

6/2/17 Infrastructure Management $260 NA NA NA NAProvides transaction and payment processing software, SaaS and services for businesses. Also provides related in-store

payment terminals

5/31/17 Infrastructure Management $1,125 NA NA NA NAProvides enterprise SQL Server administration, performance management, backup and recovery, and compliance software.

Also provides Windows PowerShell interactive development environment (IDE) software

5/30/17 Application Software $531 5.5x 4.7x NM NMProvides sales performance and compensation management, analytics and planning software as a service (SaaS) for

businesses

5/26/17

Asure Software Inc. iSystems LLC

Application Software $59 4.6x NA NA NA Provides payroll, workforce and business tax management software and data hosting services for businesses

5/11/17 Mobility $125 NA NA NA NA Provides artificial intelligence (AI), conversation-based mobile user interface development software for developers

( )

( )

( )

( )

( )

Notes:Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 1/1/2018, where Enterprise Value is > $50MM.Transactions highlighted in yellow denote Private Equity acquirers.

10/26/17 Infrastructure Management $250 4.7x 4.1x 18.9x 13.0xProvides international payment and transaction processing, and multi-currency processing services and offers payment

processing services that enable the authorization and settlement of payment transactions

10/24/17 Application Software $400 NA NA NA NA Develops self-driving vehicle and automated mobile robot vehicle software for businesses

10/24/17 Infrastructure Management $400 NA NA NA NAThe Virtu BondPoint asset of Virtu Financial, which provides trade execution software of fixed income securities for brokers

and advisors globally

10/23/17 Hosted Services $1,917 5.3x 4.7x 80.7x 19.3xProvides hosted unified communications, VoIP and PBX services, as well as telecom management software and SaaS, for

businesses and telecom service providers

10/17/17 Information Management $977 3.4x NA NA NAProvides team collaboration SaaS enabling businesses globally in the life science, financial, oil and gas, technology and

manufacturing industries to securely exchange documents and sync files

10/10/17 Application Software $3,600 NA NA NA NA

Provides healthcare benefit and claims management SaaS, including online claims authorization and eligibility lookup, online

payments, records management, medical practice assessment and client information Web portal, for healthcare providers,

hospitals and patients

10/6/17 Security $275 NA NA NA NAProvides risk analysis and analytics SaaS to the insurance industry. Software provides features for analyzing the financial

impact of cyber risk through real-time data collection and market analytics

10/5/17 Application Software $66 2.7x NA NM NAProvides a searchable online database of US federal, state and local government contracts and RFPs for the purposes of

identifying sales leads for businesses.

9/28/17 Application Software $386 5.3x 4.8x 260.9x 43.3xProvides simulation and product engineering software and SaaS for the automotive, transportation, rail, aerospace, oil and

gas sectors globally

9/28/17 Application Software $839 1.9x 2.6x NM 24.8xProvides software and hardware products, based on IP technology, for monitoring and managing energy consumption to the

utilities markets

9/27/17 Application Software $180 4.0x NA NA NA Provides marketing cross-channel attribution SaaS that enables media and video ad performance analytics and optimization

9/26/17 Application Software $807 NA NA NA NA Provides online and mobile commerce logistics software for shipping companies globally

9/26/17 Application Software $392 NA NA NA NA Provides marketing automation and behavior prediction analytics SaaS for the automotive dealership industry

9/25/17 (VelocityEHS and BOLT

Solutions assets)

Application Software $354 NA NA NA NAThe VelocityEHS and BOLT Solutions assets of Actua. VelocityEHS provides environment, health and safety (EHS) compliance

and incident management software and SaaS for HR professionals

( )

1414

Select Software M&A Transactions

RECENT ACQUISITIONS

($MM)

Announced Enterprise EV / Revenue EV / EBITDA

Date Acquirer Target Target Sector Value (EV) LTM NTM LTM NTM Target Description

7/25/17 Sage Group Intacct Corp. Application Software $850 9.7x NA NA NA Provides accounting and financial management software as a service (SaaS) for businesses

7/24/17 Partners Group Civica pl Application Software $1,370 NA NA NA NAProvides CRM, ERP, transaction processing, and document and records management software, software as a service (SaaS)

and systems integration services for public sector agencies globally

7/24/17 GENUI AG Acrolinx GmbH Information Management $60 NA NA NA NAProvides AI-based content creation software to businesses. Software provides a linguistic analytics engine that can "read"

content and provides grammar editing, monitoring, scoring, analytics reporting and development to written enterprise content

7/12/17 Application Software $80 NA NA NA NAProvides real-time contextual marketing enablement and customer experience personalization SaaS for companies in the

hospitality, dining, healthcare, entertainment, travel and education sectors

7/7/17 Application Software $133 3.3x NA 20.6x NAProvides SCM SaaS for businesses primarily within the US, UK and Europe. Software provides features for procurement, SRM,

contract management and spend analysis

7/6/17 Information Management $1,260 NA NA NA NAProvides open-source and Windows-based software for businesses. Software provides features for data management,

integration and backup

7/5/17 Infrastructure Management $55 1.0x NA NA NAProvides enterprise IT automation and workspace management software to businesses. Features include IT store

management, service desk optimization, on-boarding and off-boarding and workforce security

6/14/17 Hosted Services $200 2.0x NA 20.0x NAProvides infrastructure as a service (IaaS), backup and recovery, firewall, cloud storage and remote monitoring and

management services for businesses

6/14/17 Hosted Services $135 2.3x 2.2x NM 148.3x Operates as a domain name registry and provides domain name services to consumers and businesses

6/5/17 Security $69 1.0x NA NM NA Provides identity and access management SaaS, as well as IoT application development SaaS, for businesses

6/2/17 Infrastructure Management $260 NA NA NA NAProvides transaction and payment processing software, SaaS and services for businesses. Also provides related in-store

payment terminals

5/31/17 Infrastructure Management $1,125 NA NA NA NAProvides enterprise SQL Server administration, performance management, backup and recovery, and compliance software.

Also provides Windows PowerShell interactive development environment (IDE) software

5/30/17 Application Software $531 5.5x 4.7x NM NMProvides sales performance and compensation management, analytics and planning software as a service (SaaS) for

businesses

5/26/17

Asure Software Inc. iSystems LLC

Application Software $59 4.6x NA NA NA Provides payroll, workforce and business tax management software and data hosting services for businesses

5/11/17 Mobility $125 NA NA NA NA Provides artificial intelligence (AI), conversation-based mobile user interface development software for developers

( )

( )

( )

( )

( )

Notes:Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 1/1/2018, where Enterprise Value is > $50MM.Transactions highlighted in yellow denote Private Equity acquirers.

9/25/17 Application Software $195 NA 4.9x NA NA Provides Web-based wealth management SaaS for financial markets

9/20/17 Security $225 6.4x NA NA NA Provides authentication, single sign-on and user identity management SaaS for enterprises

9/6/17 Application Software $475 NA NA NA NAProvides e-commerce and order management software and services for retailers and businesses. Also provides web hosting,

design and integration services

9/5/17 Application Software $200 NA NA NA NA Provides clinical documentation and document management software for the emergency medical sector in the United States

9/5/17 Application Software $713 2.7x NA 13.3x NA Provides manufacturing plant project management and design software for businesses in the industrial industries

8/31/17 Application Software $128 NA NA NA NA Provides sales acceleration and lead management SaaS for the mortgage, insurance, technology and education industries

8/30/17 Application Software $175 5.1x 4.0x NA NAProvides gift card sales marketing automation for the restaurant and retail sectors. Also provides an online sales service that

enables consumers to purchase gift cards

8/28/17 Application Software $105 0.7x 1.0x NM 19.9xProvides marketing automation SaaS and digital marketing services to businesses in the consumer products, retail,

automotive, financial services, healthcare, telecommunications, marketing and entertainment industries

8/22/17 Application Software $118 0.8x NA 15.5x NAProvides business intelligence document and knowledge management, and GIS SaaS, hosting and software development

services for businesses in Scandinavia and Baltic nations

8/21/17 Application Software $323 9.6x NA 20.8x NA Provides insurance and reinsurance software solutions

8/15/17 Application Software $107 8.5x NA NA NA Provides load tracking and management SaaS for the shipping and freight sector in the US

8/3/17DigiCert Inc. [Thoma

Bravo]

Symantec Corporation

(Website Security

business assets)

Application Software $950 NA 2.4x NA NAThe Website Security business and PKI assets of Symantec, which provides security SaaS and services for businesses and

consumers globally

8/3/17 Global Payments Inc. Application Software $1,207 NA NA NA NAThe communities and sports divisions of Active Network, which provides administration, membership, donations and event

management SaaS for non-profit organizations

8/2/17 Application Software $250 NA 5.0x NA NAProvides property management software featuring document management, electronic signatures, website development,

background screening, legal contract management, payment processing and cloud computing

( )

( )(Communities & Sports Divisions)

( ) (Website Security Business Assets)

( )

1515

Select Software M&A Transactions

RECENT ACQUISITIONS

($MM)

Announced Enterprise EV / Revenue EV / EBITDA

Date Acquirer Target Target Sector Value (EV) LTM NTM LTM NTM Target Description

7/25/17 Sage Group Intacct Corp. Application Software $850 9.7x NA NA NA Provides accounting and financial management software as a service (SaaS) for businesses

7/24/17 Partners Group Civica pl Application Software $1,370 NA NA NA NAProvides CRM, ERP, transaction processing, and document and records management software, software as a service (SaaS)

and systems integration services for public sector agencies globally

7/24/17 GENUI AG Acrolinx GmbH Information Management $60 NA NA NA NAProvides AI-based content creation software to businesses. Software provides a linguistic analytics engine that can "read"

content and provides grammar editing, monitoring, scoring, analytics reporting and development to written enterprise content

7/12/17 Application Software $80 NA NA NA NAProvides real-time contextual marketing enablement and customer experience personalization SaaS for companies in the

hospitality, dining, healthcare, entertainment, travel and education sectors

7/7/17 Application Software $133 3.3x NA 20.6x NAProvides SCM SaaS for businesses primarily within the US, UK and Europe. Software provides features for procurement, SRM,

contract management and spend analysis

7/6/17 Information Management $1,260 NA NA NA NAProvides open-source and Windows-based software for businesses. Software provides features for data management,

integration and backup

7/5/17 Infrastructure Management $55 1.0x NA NA NAProvides enterprise IT automation and workspace management software to businesses. Features include IT store

management, service desk optimization, on-boarding and off-boarding and workforce security

6/14/17 Hosted Services $200 2.0x NA 20.0x NAProvides infrastructure as a service (IaaS), backup and recovery, firewall, cloud storage and remote monitoring and

management services for businesses

6/14/17 Hosted Services $135 2.3x 2.2x NM 148.3x Operates as a domain name registry and provides domain name services to consumers and businesses

6/5/17 Security $69 1.0x NA NM NA Provides identity and access management SaaS, as well as IoT application development SaaS, for businesses

6/2/17 Infrastructure Management $260 NA NA NA NAProvides transaction and payment processing software, SaaS and services for businesses. Also provides related in-store

payment terminals

5/31/17 Infrastructure Management $1,125 NA NA NA NAProvides enterprise SQL Server administration, performance management, backup and recovery, and compliance software.

Also provides Windows PowerShell interactive development environment (IDE) software

5/30/17 Application Software $531 5.5x 4.7x NM NMProvides sales performance and compensation management, analytics and planning software as a service (SaaS) for

businesses

5/26/17

Asure Software Inc. iSystems LLC

Application Software $59 4.6x NA NA NA Provides payroll, workforce and business tax management software and data hosting services for businesses

5/11/17 Mobility $125 NA NA NA NA Provides artificial intelligence (AI), conversation-based mobile user interface development software for developers

( )

( )

( )

( )

( )

Notes:Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 1/1/2018, where Enterprise Value is > $50MM.Transactions highlighted in yellow denote Private Equity acquirers.

8/1/17 Application Software $80 1.5x NA NA NAProvides customer service automation, billing, citation management, asset recovery, and transportation database systems

and outsourced services for municipalities and toll authorities

7/27/17 Security $112 NA NA NA NA Provides merchant risk intelligence software for the investment and financial industries

7/26/17 Information Management $245 2.3x 2.1x NM 20.6xProvides e-discovery and forensic investigation software that analyzes the contents of an individual or networked computer

for businesses and law enforcement agencies globally

7/25/17 Application Software $850 9.7x NA NA NA Provides accounting and financial management software as a service (SaaS) for businesses

7/24/17 Partners Group Civica pl Application Software $1,370 NA NA NA NAProvides CRM, ERP, transaction processing, and document and records management software, software as a service (SaaS)

and systems integration services for public sector agencies globally

7/24/17 GENUI AG Acrolinx GmbH Information Management $60 NA NA NA NAProvides AI-based content creation software to businesses. Software provides a linguistic analytics engine that can "read"

content and provides grammar editing, monitoring, scoring, analytics reporting and development to written enterprise content

7/12/17 Application Software $80 NA NA NA NAProvides real-time contextual marketing enablement and customer experience personalization SaaS for companies in the

hospitality, dining, healthcare, entertainment, travel and education sectors

7/7/17 Application Software $133 3.3x NA 20.6x NAProvides SCM SaaS for businesses primarily within the US, UK and Europe. Software provides features for procurement, SRM,

contract management and spend analysis

7/6/17 Information Management $1,260 NA NA NA NAProvides open-source and Windows-based software for businesses. Software provides features for data management,

integration and backup

7/5/17 Infrastructure Management $55 1.0x NA NA NAProvides enterprise IT automation and workspace management software to businesses. Features include IT store

management, service desk optimization, on-boarding and off-boarding and workforce security

All Software

Median 3.4x 4.0x 20.7x 19.9x

Mean 4.2x 3.8x 59.2x 29.3x

PE Acquirers

Median 3.6x 2.4x 43.1x 19.3x

Mean 4.0x 2.7x 43.1x 19.3x

( )

( )

1616

RECENT PRIVATE FINANCINGS

Notes:Source: Pitchbook. Reflects deal activity through 12/31/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.

($MM)

Deal Date CompanyAmount

Raised Brief Description Investors

12/28/17 NextCapital $30Provider of a digital advice platform designed to deliver personal, objective, affordable and

portfolio services to investors everywhereOak HC/FT, Manulife, Route 66 Ventures, Transamerica Ventures, VCET Capital

12/22/17 Artemis Health $23Developer of a healthcare analytics platform designed to optimize benefit programs and

minimize spendingF-Prime Capital Partners, Kickstart Seed Fund, Maverick Ventures (San Francisco)

12/20/17 Ascender Group $100Provider of an advanced payroll service intended to deliver cost-effective and configurable

human capital management servicesHarbourVest Partners

12/20/17 Passport $43Provider of a parking, transportation and transit management platform designed to

centralize and control parking and transit systemsBain Capital Ventures, Grotech Ventures, MK Capital, Relevance Capital

12/19/17 ACL Services $50 Developer of SaaS based governance, risk management and compliance (GRC) software Norwest Venture Partners

12/19/17 Anodot $23Developer of SaaS real time analytics & automated anomaly detection system designed to

detect & turn outliers in time series data into valuable business insightsAleph, Redline Capital Management, Disruptive

12/19/17 Convercent $25Provider of SaaS based corporate compliance management tools that facilitate the design

and implementation of compliance programsRho Ventures, Sapphire Ventures, Tola Capital

12/19/17 Domo $115Provider of a cloud-based business-management platform designed to connect data,

people, and expertise that are needed to improve business results

Castor Ventures, SharesPost, The Yard Ventures, BlackRock, GGV Capital, Glynn Capital

Management, The Capital Group Companies

12/19/17 Lemonade $120Provider of a peer-to-peer insurance platform designed to offer home insurance and

coverage products

SoftBank Group, Aleph, Allianz X, General Catalyst Partners, GV, Sequoia Capital Israel, Thrive

Capital, Tusk Ventures, XL Innovate

12/19/17 Maana $28Provider of a knowledge platform graph search engine designed to encode the world's

industrial expertise and data into new digital knowledge

Accenture Ventures, China International Capital Corporation, Eight Square Capital, Sino

Capital Group, Chevron Technology Ventures, GE Ventures, Intel Capital, Saudi Aramco Energy

Ventures, Shell Technology Ventures

12/19/17 One Concern $20Developer of an earthquake intelligence platform designed to help public agencies make

more informed decisions rapidly during any incident

David Petraeus, Deep Fork Capital, Geodesic Capital, New Enterprise Associates, New

Ventures, Ronald Conway, CrunchFund, Pear Ventures, Urban.Us

12/19/17 Rubikloud Technologies $37Developer of retail intelligence platforms designed to empower retailers to leverage

machine learning and big data systems

iNovia Capital, Intel Capital, OpenText Enterprise Apps Fund, Access Industries, Horizons

Ventures

12/15/17 YapStone $71 Provider of a web and mobile based payments platform NA

12/14/17 Fyusion $22 Operator of a computer vision company designed to make images intelligent 2020, COLOPL, Gionee, NTT Docomo Ventures, Presence Capital, New Enterprise Associates

12/14/17 Instana $20Provider of a Big Data and micro-services architecture monitoring platform intended to

automate all aspects of application performance management (APM)Accel, Target Partners

1717

RECENT PRIVATE FINANCINGS

Notes:Source: Pitchbook. Reflects deal activity through 12/31/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.

($MM)

Deal Date CompanyAmount

Raised Brief Description Investors

12/14/17 Leadspace $21Developer of a SaaS audience management platform designed to help marketing & sales

raise pipeline & conversions by knowing and engaging their total available marketArrowroot Capital, Jerusalem Venture Partners

12/14/17 Splice $35 Provider of a technology platform designed to enhance the music-creation process DFJ Growth, Flybridge Capital Partners, True Ventures, Union Square Ventures

12/13/17 Dreamscape Immersive $30Developer of virtual reality technology designed to create an entirely new form of

mainstream location based entertainment

AMC Theatres, Image Nation, UTA Ventures, Viacom, VRSense Solutions, 21st Century Fox,

Bold Capital Partners, Warner Bros. Entertainment

12/13/17 FreightHub $20Provider of a digital freight forward and shipment management platform designed to

manage logistics

Mittal Investments, Northzone Ventures, Cavalry Ventures, Cherry Ventures Management,

Global Founders Capital, La Famiglia

12/13/17 Insikt $50Provider of an online lending as a service (LaaS) loan origination and investing platform

intended to power tomorrow's lenders

Grupo Coppel, LEAP Global Partners, Colchis Capital Management, FirstMark Capital,

Revolution

12/13/17 Kingsoft Cloud $300Provider of cloud computing services intended to provide cloud services for domestic game

developers

China Minsheng Investment, Forebright Capital Management, Liyue Investment, Shunwei

Capital, Kingsoft Corporation

12/13/17 OTA Insight $20 Provider of a revenue management platform designed to increase revenue and profit Eight Roads Ventures, F-Prime Capital Partners

12/13/17 Skillz $25Developer of a mobile gaming platform designed to connect mobile gamers through

competition and making esports for everyone

Andy Miller, Bridge Bank, Liberty Global Ventures, Telstra, Accomplice VC, Wildcat Capital

Management

12/12/17 Mindtickle $27Provider of a data-driven sales readiness platform designed for businesses to prepare and

train their sales teamsCanaan Partners, Accel, New Enterprise Associates, Qualcomm Ventures

12/11/17 Affirm $200 Provider of an online alternative lending platformCaffeinated Capital, GIC Private, Ribbit Capital, Founders Fund, Khosla Ventures, Lightspeed

Venture Partners, Spark Capital

12/11/17 BitGo $43Developer of a multi-signature secure digital wallet created to make digital currencies

usable for businesses in a regulated economyDavid Sacks, DRW Venture Capital, Valor Equity Partners, Bill Lee

12/11/17 Creditas $50Provider of a digital secured lending platform designed for lending, investment and

financing at lower interest rates

Vostok Emerging Finance, International Finance Corporation, Kaszek Ventures, Naspers

Ventures, QED Investors, Quona Capital

12/11/17 Menlo Security $40Provider of a cyber security platform designed to eliminate the threat of malware from the

web and email

American Express Ventures, Ericsson Ventures, HSBC Bank UK, JPMorgan Chase & Company,

Engineering Capital, General Catalyst Partners, Osage University Partners, Sutter Hill Ventures

12/11/17 Phreesia $34Provider of a SaaS patient intake management platform designed to offer consistent

patient experienceNA

12/11/17 ShieldX $25 Developer of microservices platform designed for agentless, multi-cloud securityAshar Aziz, Dimension Data, Symantec Ventures, Aspect Venture Partners, Bain Capital

Ventures, FireEye

1818

RECENT PRIVATE FINANCINGS

Notes:Source: Pitchbook. Reflects deal activity through 12/31/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.

($MM)

Deal Date CompanyAmount

Raised Brief Description Investors

12/11/17 Tier1crm $34 Provider of cloud-based customer relationship management (CRM) software MassMutual Ventures, Salesforce Ventures, Wavecrest Growth Partners

12/9/17 Weather Analytics $21Developer of a weather intelligence software designed to serve business challenges by

forecasting weather conditions and climatic risksW.R. Berkley, Houston Casualty Company

12/8/17 SpotHero $31Developer of an on-demand mobile parking application designed to offer easy parking

facilities

AutoTech Ventures, Corazon Capital, Daniel Hoffer, Global Founders Capital, Levy Family

Partners, Math Venture Partners, Sam Yagan, Bullpen Capital, Chicago Ventures, Draper

Associates, Insight Venture Partners, OCA Ventures, Pritzker Group Venture Capital

12/8/17 Vroom $100 Provider of an online used-car marketplace designed to offer an online direct car retailer General Catalyst Partners, L Catterton, Pico Partners, T. Rowe Price

12/7/17 Contrast Security $30 Developer of application security software designed to protect against cyber-attacksAXA Strategic Ventures, Battery Ventures, Microsoft Ventures, Acero Capital, General Catalyst

Partners

12/7/17 Mswipe Technologies $41 Provider of mobile point of sale (POS) payment servicesB Capital Group, Falcon Edge Capital, Fosun Capital Group, Ratan Tata, RNT Associates,

University of California, Axis Private Equity, DSG Consumer Partners, Matrix Partners India

12/6/17 BitPay $30Provider of blockchain payments technology platform designed for secure bitcoin payment

acceptance, savings and spendingAquiline Capital Partners

12/6/17 Medlinker $60Developer of a social networking platform designed to help doctors connect and develop a

deep cooperation up and down the supply chainChina Electronics Corporation Data, Sequoia Capital China, Tencent

12/5/17 Lyft $1,500Provider of an on-demand ride hailing platform designed to connect passengers with local

drivers

CapitalG, Fidelity Management & Research, Ontario Teachers' Pension Plan, UTA Ventures,

AllianceBernstein, Baillie Gifford, Janus Henderson Group, Kohlberg Kravis Roberts, Rakuten

12/5/17 Payoneer $20Provider of an online payment platform designed to empower global commerce with an

innovative cross-border payments platformChina Broadband Capital Partners

12/5/17 WorldRemit $40Provider of an online digital money transfer platform created to send money to friends and

family living abroad, using a computer and smartphoneLeapfrog Investments, Accel, Technology Crossover Ventures

12/4/17 Contentful $28

Provider of a content management platform designed to help digital teams ship and iterate

content faster, across all of their web applications, mobile applications and connected

devices

General Catalyst Partners, Point Nine Capital, Balderton Capital, Benchmark Capital

12/4/17 EasyRetailPro $20Developer of a cloud-based social customer relationship management platform designed

to provide CRM services to retail customersDCM Ventures, JD.com, Tencent, Vertex Ventures China

12/4/17 LaunchDarkly $21Developer of a feature management platform designed to eliminate risk for developers and

operations teams from the software development cycleRedpoint Ventures, Vertex Ventures US

11/30/17 Deposit Solutions $20Developer of an open banking platform designed to connect banks and depositors across

Europee.ventures, Greycroft Partners

1919

RECENT PRIVATE FINANCINGS

Notes:Source: Pitchbook. Reflects deal activity through 12/31/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.

($MM)

Deal Date CompanyAmount

Raised Brief Description Investors

11/30/17 Farmer's Business Network $110Developer of a farmer-to-farmer agronomic insights platform designed to create a better

farm economy

T. Rowe Price, Temasek Holdings, Acre Venture Partners, DBL Partners, GV, Kleiner Perkins

Caufield & Byers

11/30/17 H2O.ai $40Provider of an open-source machine learning automation platform designed to help in big

data analysis

Aegon, Crane Ventures Partners, New York Life Investment Management, Nvidia, Wells Fargo,

Nexus Venture Partners, Transamerica Ventures

11/30/17 Mojio $24Provider of a cloud-based connected car platform intended to offer secure connected car

services

Innogy Venture Capital, Amazon Alexa Fund, BDC Capital IT Venture Fund, Deutsche Telekom

Strategic Investments, Kensington Capital Partners, Relay Ventures, Trend Forward Capital

11/30/17 Scalyr $26Provider of a cloud-based log management and server monitoring platform designed to

search terabytes of logs in secondsHeroic Ventures, Shasta Ventures, Bloomberg Beta, Susa Ventures

11/30/17 Uptake $117Developer of a predictive analytics platform designed to transform data into measurable

business valueBaillie Gifford, GreatPoint Ventures, Revolution

11/29/17 ReversingLabs $25Developer of a threat detection and analysis technologies designed to detect and analyze

cyber threatJPMorgan Chase & Company, Trident Capital Cybersecurity

11/29/17 Spot.IM $25Developer of a social engagement platform intended to provide an on-site community for

real-time conversationsInsight Venture Partners, Altair Capital, Norma Investments

11/29/17 Thrive Global $30Provider of a consumer wellness platform intended to end the stress and burnout epidemic

by offering companies and individuals sustainable, science-based services

Canvas Ventures, IVP, Marc Benioff, Michael Huffington, Phillip Fernandez, Advancit Capital,

Blue Pool Capital, Female Founders Fund, Greycroft Partners, Heather Reisman, Lerer Hippeau

Ventures, Sean Parker

11/28/17 1QBit $36Developer of quantum computing software designed to harness the quantum hardware

technologies in order to solve intractable industry problems

Accenture, Allianz Global Investors, Fujitsu, Tiny Capital, CME Ventures, Royal Bank of

Scotland

11/28/17 Alo7 $38Provider of an online tutoring platform created to connect young Chinese students to learn

English language

Legend Capital, Shanghai Guohe Capital, UG Investment, New Oriental Education &

Technology Group, Qualcomm Ventures, Vickers Venture Partners

11/28/17 Dejero $25Developer of a cloud based platform designed to simplify remote acquisition, cloud

management and multi-screen distribution of professional live videosIntelsat, Kayne Anderson Capital Advisors

11/28/17 InstaCarro $23 Provider of an online platform intended to buy and sell used carsGlobal Founders Capital, Rise Capital, Big Sur Ventures (Spain), FJ Labs, FundersClub,

Hummingbird Ventures, Lumia Capital, Tekton Ventures

11/24/17 Inagora $68Operator of a cross-border e-commerce mobile platform intended to offer Japanese

products to global consumersKDDI, SBI Holdings, ITOCHU

11/24/17 Niantic $200 Developer of an augmented reality platform designed to enrich mobile gaming experiencesFounders Fund, Javelin Ventures, Meritech Capital Partners, NetEase, Spark Capital, You & Mr

Jones Brandtech Ventures

11/22/17 Atomist $22Developer of a Saas based development automation platform designed to transform the

way software is developed and deliveredAccel, Matrix Partners

2020

RECENT PRIVATE FINANCINGS

Notes:Source: Pitchbook. Reflects deal activity through 12/31/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.

($MM)

Deal Date CompanyAmount

Raised Brief Description Investors

11/21/17 TuSimple $55Provider of an autonomous truck driving platform intended to provide driverless truck

servicesComposite Capital Partners, Fuhe Capital, Trinity Investments, Sina, Zhiping Capital

11/20/17 aCommerce $65Provider of an electronic commerce logistics services intended to deliver customized e-

commerce platform for global brandsEmerald Media, Blue Sky Alternative Investments, DKSH Holding, MDI Ventures

11/20/17 JumpCloud $20Developer of a Directory-as-a-Service (DaaS) platform intended to connect employee

identities to their systems, apps and networksOpenView Venture Partners, Foundry Group

11/20/17 Shouqi Limousine & Chauffeur $106 Provider of a ride-booking application Flagship Pioneering

11/17/17 Deliveroo $482 Provider of an online food delivery platform designed to order restaurant mealsFidelity Management & Research, T. Rowe Price, Accel, DST Global, General Catalyst Partners,

Index Ventures (UK)

11/17/17 FiTeq $47 Developer of a payment authentication platform created to automate cashless payments NA

11/17/17 GoSpotCheck $22

Provider of a SaaS-based field execution management platform designed for enterprises

who need real-time data and intelligence from the field in order to make quicker and

better business decisions

Insight Venture Partners, Point Nine Capital

11/17/17 Yunmanman $120Developer of a freight transportation application intended to offer efficient vehicle

transportation and cargo managementTiger Global Management

11/16/17 LimeBike $50 Operator of a bike sharing platformAME Cloud Ventures, Coatue Management, Franklin Templeton Investments, GGV Capital,

Section 32, StartX, The Durant Company, Andreessen Horowitz, DCM Ventures

11/16/17 TaskEasy $21Provider of an on-demand lawn maintenance service platform designed for property

owners and contractors to easily book and manage yard care online

River Cities Capital Funds, Access Venture Partners, Camber Creek, Delta Electronics, Grotech

Ventures, Moderne Ventures

11/15/17 Built Technologies $21Developer of a construction management software designed to make managing

construction loans easyIndex Ventures (UK), Nyca Partners, Scott Sohr

11/15/17 Health IQ $35 Developer of a health knowledge measurement application Andreessen Horowitz, Charles River Ventures, First Round Capital, Foundation Capital

11/15/17 Logz.io $23Provider of an open-source log analytics platform designed to help companies of all sizes to

derive more value from machine dataVintage Investment Partners, 83North, Giza Venture Capital, OpenView Venture Partners

11/15/17 Maimai $75 Provider of a career-oriented social networking platform designed to chat at workplace DCM Ventures, Zhaopin, IDG Capital, Morningside Group

11/15/17 Spire $70Provider of a satellite-powered data services intended to deliver deep insights into the

parts of the world where collecting data is very difficultLuxembourg Future Fund

2121

Recent Software IPO Pricings

SOFTWARE CAPITAL MARKETS UPDATE

Notes:Sources: Capital IQ and Company filings as of 1/12/2018. IPO pricings include public registrations only. (1) First Trading Day listed as Offer Date.

($MM)

Offer Date(1) Market Cap @

IPO DateAmount Raised Pre IPO Filing Range Offer Price

% Change

Offer /

Midpoint Price

% Change

1st Trading Day / Offer

Price

% Change Current /

Offer Price

17-Nov-17 $1,110 $240 9.00 - 11.00 $12.00 20.0% 8.3% 25.3%

15-Nov-17 $734 $131 13.50 - 15.50 $16.00 10.3% 12.5% 31.8%

1-Nov-17 $1,106 $156 11.00 - 13.00 $13.00 8.3% 40.8% 80.5%

19-Oct-17 $1,570 $192 20.00 - 22.00 $24.00 14.3% 33.6% 15.8%

25-May-17 $881 $75 11.00 - 13.00 $12.00 - 25.1% 72.7%

28-Apr-17 $2,318 $225 12.00 - 14.00 $15.00 15.4% 20.7% 6.1%

13-Apr-17 $1,146 $116 8.00 - 10.00 $11.00 22.2% 21.9% 22.6%

7-Apr-17 $2,134 $187 15.00 - 17.00 $17.00 6.3% 38.3% 68.9%

24-Mar-17 $873 $126 12.00 - 14.00 $14.00 7.7% 10.7% 77.8%

17-Mar-17 $3,118 $221 14.00 - 16.00 $17.00 13.3% 45.6% 35.5%

Name

2222

195

151

(5)

(4)

(6)(9) (6)

(7)

(8)

(9)

(7)

(7)

(11)

(8)(11)

(9)

(6)

(10)

(12)

(13)

6

11

7

17

1617

11

9

10

140

150

160

170

180

190

200

210PE Acquisitions Strategic Acquisitions IPO

Notes:Sources: Capital IQ, company filings. Market data as of 1/12/2018.

A SHRINKING UNIVERSE OF PUBLICLY TRADED SOFTWARE COMPANIESStrategic and Private Equity Exits Outweigh New Issues

2008 2009 2010 2011 20152012 2013 2014 2016

FortinetCDC Software

LogMeInMedidata

SolarWindsRosetta Stone SciQuest

RealPageIntraLinksEnvestnet

Qlik BroadSoft

Higher One Convio

SPS CommerceSS&C

QuinStreet

JiveImperva

CarboniteTangoe

ResponsysCornerstone

Epocrates

WorkdayFleetmatics

QualysEloquaE2open

ServiceNowExa

IncadeaInfloblox

ProofpointSplunk

ExactTargetDemandwareBazaarvoiceGreenway

AVGGuidewire

MavenirBarracudaWix.comCovisint

RingCentralFireEyeCvent

Gigamon Textura

ChannelAdvisorMarketoTableauHalogen

RallyMarin

Model N

WorkivaHortonworks

New RelicHubSpotCyberArk

MobileIronKinaxis

ZendeskPaycom

OPOWERFive9

2UBorderfree

Amber RoadA10 Networks

PaylocityVaronis Systems

AtlassianMimecast

InstructureRapid7Sophos

AppFolioAlarm.Com

XactlyShopifyApigee

Box

TwilioSecureWorks

TalendEverbridge

Apptio Gridsum Holding

NutanixCoupa

BlackLine, Inc.

2017

MulesoftAlteryx

OktaYext

ClouderaAppian

MongoDBAltair Engineering

SendGridSailPoint

2009 2010 2011 2012 2013 2014 2015 2016 2017

IPO + 6 + 11 + 7 + 17 + 16 + 17 + 11 + 9 + 10

Strategic Exits - 7 - 11 - 8 - 11 - 9 - 6 - 10 - 12 - 13

PE Exits - 5 - 4 - 6 - 9 - 6 - 7 - 8 - 9 - 7

2323

TMT Transactions Since Q3 2002

VENTURE CAPITAL INDUSTRY

Notes:(1) Number of TMT VC Investments per PriceWaterhouseCoopers / NVCA MoneyTree report. TMT inclusive of Computers and Peripherals, Electronics / Instrumentation, IT Services, Media and Entertainment, Networking and

Equipment, Semiconductors, Software and Telecommunications until Q3 2016. As of Q4 2016, TMT inclusive of Computer Hardware / Services, Electronics, Internet, Media (Traditional), Mobile / Telecommunications, Risk & Security Systems, and Software.

(1)

0

200

400

600

800

1,000

$0

$2

$4

$6

$8

$10

$12

$14

Q3 2002 Q3 2003 Q3 2004 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Nu

mb

er o

f In

vest

men

ts

$B

n

Quarter - Year

Number of Deals Investment Amount

2424

Deep Software Sector Expertise

GCA OVERVIEW

Notes:The above transactions represents a compilation of past and current deals that GCA entities have advised on. Generally, GCA Corporation advises Asian-based transactions, while GCA Advisors, LLC advises U.S.-based transactions and GCA Altium advises UK/European-based transactions. At times, multiple GCA entities may be retained to advise on the same transaction.

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